Mutual funds: Valued at the daily closing price as reported by the fund. Mutual funds held by the Foundation are open-end mutual funds that are registered with the Securities and Exchange Commission. These funds are required to publish their daily net asset value (NAV) and to transact at that price. The mutual funds held by the Foundation are deemed to be actively traded.
Real estate investment trust: Valued at the NAV of shares held by the Foundation at year end.
The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Foundation believes its valuation methods are appropriate and consistent with those of other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.
Fair value measurements as of June 30, 2017 are as follows:
| Level 1 | Level 2 | Level 3 | Total | |
|---|---|---|---|---|
| Common stocks | $ 3,963,060 | $ - | $ - | $ 3,963,060 |
| Mutual funds | 1,985,283 | - | - | 1,985,283 |
| Municipal bonds | - | 236,446 | - | 236,446 |
| Corporate bonds | - | 2,341,235 | - | 2,341,235 |
| U.S government securities | 338,083 | - | - | 338,083 |
| Real estate investment trust | - | 8,129 | - | 8,129 |
| Equity exchange traded funds | 209,847 | - | - | 209,847 |
| Total | $ 6,496,273 | $ 2,585,810 | $ - | $ 9,082,083 |
For the year ended June 30, 2017, net assets were released from donor restrictions by incurring expenses satisfying the purpose of the restrictions specified by donors as follows:
| Endowment spending allocation | $ 772,632 |
|---|---|
| University support | 512,984 |
| Scholarships | 232,908 |
| Operating and other expenses | 91,395 |
| Student support | 69,427 |
| Travel and other expenses | 44,704 |
| Total release from restrictions | $ 1,724,050 |
The Foundation has a defined contribution profit sharing plan which covers all employees who meet certain requirements. Foundation contributions are discretionary. No contributions were made for the year ended June 30, 2017.
43.